Today we had formation of a large outside day bar... this is an indication of a possible trend reversal.
This has also happened near a known resistance area.
It should be noted that the first selloff in nifty started the day the election results were declared (sell on good news)... this is evidenced by the tall candlestick and close near the day's low.
The rally thereafter was a corrective rally which looks like is now getting sold off from today.
Note that I am not expecting much of a sell off and I am expecting markets to trade in a range for a 1-2 weeks. This will complete the triangle formation.
Now if support at 7100 breaks, expect start of bigger trend reversal. If nifty closes above 7570 spot, expect another blastoff rally.
This means bears will have to wait for some time before they can start shorting aggressively.
This has also happened near a known resistance area.
It should be noted that the first selloff in nifty started the day the election results were declared (sell on good news)... this is evidenced by the tall candlestick and close near the day's low.
The rally thereafter was a corrective rally which looks like is now getting sold off from today.
Note that I am not expecting much of a sell off and I am expecting markets to trade in a range for a 1-2 weeks. This will complete the triangle formation.
Now if support at 7100 breaks, expect start of bigger trend reversal. If nifty closes above 7570 spot, expect another blastoff rally.
This means bears will have to wait for some time before they can start shorting aggressively.
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